Promotion policies in Human Resource Management (HRM)

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 Promotion policies in Human Resource Management (HRM):


1. Promotion Based on Merit

👉 Meaning:
Promotion is given to the employee who performs the best, works hard, and shows good results, regardless of how long they’ve been working.

✅ Advantages:

  1. Encourages hard work – Employees try to improve their performance.
  2. Promotes talented people – The best worker gets promoted.
  3. Improves company performance – Skilled people help the company grow.
  4. Motivates employees – People try to learn new things and do better.

❌ Disadvantages:

  1. Can be unfair – Boss may show favoritism.
  2. Upsets senior workers – Experienced employees may feel ignored.
  3. Less teamwork – People may focus only on their own work.
  4. Creates competition – May lead to jealousy and conflict.

2. Promotion Based on Seniority

👉 Meaning:
Promotion is given based on how long an employee has worked in the company, not on how well they perform.

✅ Advantages:

  1. Simple and fair – Based only on years of service.
  2. Loyalty is rewarded – Old employees feel secure and valued.
  3. Less conflict – Reduces favoritism and disputes.
  4. Boosts morale – Long-time workers feel respected.

❌ Disadvantages:

  1. Talent is ignored – Good performers may be left out.
  2. Frustrates young workers – They don’t get a chance to grow fast.
  3. Reduces efficiency – Unskilled people may get promoted.
  4. No motivation to improve – People may stop learning.

3. Promotion Based on Merit-Cum-Seniority

👉 Meaning:
Promotion is based on both performance and years of service. So, a person must be good at work and also have some experience.

✅ Advantages:

  1. Balanced system – Rewards both talent and loyalty.
  2. Fair to all – Seniors and juniors both have a chance.
  3. Better leadership – Promoted employees have skill and experience.
  4. Motivates everyone – Both old and new workers feel hopeful.

❌ Disadvantages:

  1. Hard to decide – No clear rule on how much importance to give to merit or seniority.
  2. May cause confusion – Employees might not understand the criteria.
  3. Need for good system – Requires honest and clear performance reviews.
  4. Possible complaints – Some may still feel unfairly treated.

Summary:

Policy TypeBased OnGood ForNot Good For
MeritPerformance & skillTalented & hard-working staffSenior but average workers
SeniorityYears of serviceLoyal and long-serving staffYoung and skilled workers
Merit-cum-SeniorityMix of merit and seniorityBalanced promotion for allMay cause confusion if unclear



🔖 Blog by Chandan Sha | For more legal insights, stay tuned to Study on Law Hills.


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By Chandan Sha
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Study on Law Hills is a legal blog that simplifies Indian law for students and professionals. From Constitution to Criminal Law, it offers:

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